GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » NovaBev Group (MIC:BELU) » Definitions » ROIC %

NovaBev Group (MIC:BELU) ROIC % : 22.47% (As of Dec. 2023)


View and export this data going back to 2007. Start your Free Trial

What is NovaBev Group ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. NovaBev Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 22.47%.

As of today (2024-12-12), NovaBev Group's WACC % is 8.49%. NovaBev Group's ROIC % is 20.57% (calculated using TTM income statement data). NovaBev Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


NovaBev Group ROIC % Historical Data

The historical data trend for NovaBev Group's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NovaBev Group ROIC % Chart

NovaBev Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.45 14.86 15.89 23.85 21.24

NovaBev Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.73 17.88 26.27 18.34 22.47

Competitive Comparison of NovaBev Group's ROIC %

For the Beverages - Wineries & Distilleries subindustry, NovaBev Group's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


NovaBev Group's ROIC % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, NovaBev Group's ROIC % distribution charts can be found below:

* The bar in red indicates where NovaBev Group's ROIC % falls into.



NovaBev Group ROIC % Calculation

NovaBev Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=15292 * ( 1 - 20.32% )/( (52742 + 61988)/ 2 )
=12184.6656/57365
=21.24 %

where

NovaBev Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=19048 * ( 1 - 26.3% )/( (62965 + 61988)/ 2 )
=14038.376/62476.5
=22.47 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


NovaBev Group  (MIC:BELU) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, NovaBev Group's WACC % is 8.49%. NovaBev Group's ROIC % is 20.57% (calculated using TTM income statement data). NovaBev Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases. NovaBev Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


NovaBev Group ROIC % Related Terms

Thank you for viewing the detailed overview of NovaBev Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


NovaBev Group Business Description

Traded in Other Exchanges
N/A
Address
4, Yakimanskaya Embankment, Building 1, Moscow, RUS, 119180
NovaBev Group is a Russian alcohol and food products and operation of wholesale and retail business. It producer of vodka and distilled beverages, and is one of the main importers of spirits and wine in the country.

NovaBev Group Headlines

No Headlines